Why Apple Should Launch an iPhone Subscription Plan
Why Apple Should Launch an iPhone Subscription Plan
4:04

Why Apple Should Launch an iPhone Subscription Plan

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Speaker 1: Between Netflix, Amazon prime and Spotify. I bet you already have too many subscriptions. Now apple might add one more. Your iPhone Speaker 1: Bloomberg reports that apple is working on a new payment option. That would let you subscribe to your iPhone rather than buying it. Of course, there's a lot we don't know yet, but a program like this could provide a bigger incentive to trade in your old phone rather than letting it collect [00:00:30] dust in a drawer. And that could go a long way in cutting down on e-waste. The more phones apple gets through. Trade-ins the more components it has to recycle and put in new devices. And depending on the price, a subscription might end up being cheaper than buying multiple apple products. Here's what we know so far based on Bloomberg's report. If it turns out to be true, apple wants to let you subscribe to its hardware products, just like you would subscribe to iCloud apple music or apple TV plus. So in theory, [00:01:00] that means you'd be able to rent gadgets like iPhones and iPads rather than buying them outright. Speaker 1: And unlike other monthly payment options, the price wouldn't be the cost of the device split over 12 or 24 months. Instead, apple would charge a monthly fee that varies depending on the device. Apple has also discussed letting subscribers exchange old models for newer iPhones. Once they launch according to the report, of course, that would be great for Apple's business. It could encourage people to upgrade more often at a [00:01:30] time when people have been holding onto their phones for longer periods of time. But it also means apple would have a steady stream of old iPhones coming in that it can either resell or S strip down for materials. And that's a, because apple eventually wants to build iPhones completely from recycled materials. And yes, there are already plenty of ways to trade in your old phone, through apple and other retailers, but recycling rates aren't as high as you might think. Speaker 1: Just 31% of old iPhones typically get traded [00:02:00] in according to consumer intelligence research partners, that's not bad, especially considering only 10% of old Android phones typically get traded in, but there's still a lot of progress to be made. And only about 20% of e-waste is officially reported and properly collected says a report from the world economic forum and the platform for accelerating the circular economy. A subscription plan could make trading in your old iPhone more than just an option to save money. Trade-ins would probably be a bigger part of the whole sales experience [00:02:30] possibly making, leasing your iPhone as a normal, as leasing a car. Since Bloomberg says the subscription price isn't meant to cover the entire cost of the device. There's also a chance it could be cheaper than current monthly payment options. That means subscription might make it more affordable to get your hands on multiple apple devices. Speaker 1: That's if Bloomberg's report turns out to be true, apple has yet to announce such a program and the Bloomberg report doesn't have all the details. We still don't know how much the program would cost or what [00:03:00] happens when your subscription expires. We also don't know whether trade-ins will be a major part of the program. Bloomberg only says apple has discussed the idea. Regardless, an iPhone subscription would have to be priced just right in order to succeed. There are already tons of ways to buy new phones, apple carriers, and other retailers already offer big training discounts and ways to purchase phones through monthly installment plans. There's also Apple's own iPhone upgrade program, which starts at about $35 [00:03:30] per month. Unless you spread out the cost of your device over time, a subscription service would have to be cheaper than those monthly payment options to really make a difference. Let's be honest, apple. Isn't exactly known for its low prices. There's also the issue of whether people are just burned out from the sheer number of services they already subscribe to adding yet. Another one could be a tough sell. We have a lot of questions, but hopefully we'll learn more from apple later this year. Would you pay for your iPhone through a subscription instead of buying it? Let us know in the comment. Thanks [00:04:00] for watching. And I'll see you next time.

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